Malaysia: Lorry Operators Want Cross-subsidy

[Daily News Editor]

Lorry Operators Want Cross-subsidy For Not Adjusting Rates


By Alan Ting

PUTRAJAYA, May 12 (Bernama) -- The 10,000 member-Pan Malaysian Lorry Operators Association (PMLOA) is seeking a cross-subsidy from the government, as an alternative for not adjusting rates, following the recent increase in petrol and diesel prices.

Its president Er Sui See said, a comprehensive cross-subsidy plan, which was to avoid operators from adjusting their charges up to a maximum rate of 25 sen per 1.6 km, would be submitted to Domestic Trade and Affairs Ministry officials during their meeting at the ministry tomorrow.

Among others, the association is asking the government to reconsider their appeal to lower the road tax for general cargo lorries, and to provide cross-subsidy for spare parts and lorry tyres in order to lower down the prices and eventually the operating cost.

"We are going to ask the government to provide us (lorry operators) the cross subsidy in these three items. If they (government) can consider this plan, then we are willing to absorb the increasing cost," he told Bernama when contacted Thursday.

Er said the PMLOA was also disappointed with reports that the government had no plans to review the existing road tax for general cargo lorries as requested by the association.

Wednesday, Transport Minister Datuk Seri Chan Kong Choy was quoted as saying that the government had no plans to review the road tax but allowed the association to adjust their rates to a maximum 25 sen per tonne per 1.6 km as stipulated in the Road Traffic Ordinance 1958.

In seeking a road tax reduction, the association noted the wide disparity between the charges for general cargo and container lorries.

Citing an example, he said for a general cargo lorry of maximum permissible laden weight of 36 tonnes, the owner has to pay RM6,865 a year compared with a container owner who only pays RM1,200 a year.

Er also said the road tax could be as high as RM8,784 for a 44-tonne lorry but most of the 10,000 PMLOA members operate 36 tonne lorries which cost the owner RM6,865 in road tax.

"The owner can save up to RM5,000 a year if the government is willing to reduce the road tax and put it on par with the road tax for container lorries which is about RM1,200 per year," he said.

He said the recent hike in retail prices of diesel and higher toll rates, coupled with high road tax for general cargo lorries, had become a huge burden for the operators.

Moreover, he noted, about 70 percent of the transport operators were not eligible for subsidised diesel as they did not meet the requirement of owning more than 15 lorries each.

The lorry operators planned to raise the charges by between 18 and 25 sen per tonne per 1.6 km following the 20-sen and 10 sen hikes in diesel and petrol prices respectively on May 5.

Er also said the PMLOA also planned to submit a memorandum to Prime Minister Datuk Seri Abdullah Ahmad Badawi if the government continues to reject their request for the road tax reduction.

-- BERNAMA

Malaysian National News Agency
_________________
To join in the discussions on our interactive forums Click Here